Shares of Union Bank of India getting a spotlight in today’s trading session after the Bank said it will seek shareholders' approval for raising up to Rs 6,800 crore equity capital.  Reacting to the development, the stock of Union Bank of India sparkled by over 3 percent intraday to Rs 32  per share both BSE and NSE.

The Bank’s extraordinary general meeting (EGM) will be held on December 30, 2020 through video conferencing or other audiovisual means to obtain shareholders' approval for raising equity capital up to Rs 6,800 crore during the FY2020-21, Union Bank of India said in a regulatory filing. The fundraising will be through various modes such as public issue, rights issue, or private placement including Qualified Institutions Placement or preferential allotment to the government, the filing added.

"In order to meet the minimum capital and leverage ratio requirements under the Basel-III guidelines for the expansion of business assets and based on the estimated growth, your directors have decided to raise equity share capital up to Rs 6,800 crore," Union Bank of India said. The enhanced capital will be utilized for general business purposes of the bank, it added.

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